Using gas networks to decarbonise offers significant cost savings

In 2016, ENA’s Gas Futures Group commissioned KPMG to carry out a study considering the decarbonisation challenge which is driving homes and businesses to make improvements towards a low carbon future. The report found that making use of the UK’s gas network infrastructure offers a practical and affordable solution to the future challenge of heat decarbonisation.

KPMG have looked at how the heat sector can be carbonised and in assessing this they have looked at four possible future scenarios. These are the evolution of gas networks, prosumer (self-generating heating and energy solutions), diversified energy sources with different technologies and electric future. The report assesses the benefits and drawbacks of each system.

The report found that evolution of gas networks offers a significant cost saving against other low carbon heating sources. It would involve injecting green gas into the grid. The value to the consumer in terms of convenience and reliability also plays a significant part in the considerations.

Recommendations made by the report include:

1. Gas and electricity policy decisions need to be firmed up ahead due to the long term nature of network investments.

2. More detailed assessment on the acceptance of major change by consumers and society is needed, with regard to both policy and practicality aspects.

3. Gas and heat innovation funding and piloting needs to continue.

4. Transport decarbonisation policy needs to be integrated with power and heat decarbonisation policy ENA Chief Executive David Smith said:

“Heat accounts for 45% of the UK’s energy needs and this report demonstrates the scale of the challenge facing the UK as we look to decarbonise the sector in a secure and affordable way.” “This analysis places important emphasis on the customer and shows that making efficient use of the extensive gas network available to us in the UK offers an affordable and practical solution to this challenge.” Robert Hull, Director at KPMG and author of the report commented:

“Gas currently delivers an essential service, providing heat for UK consumers and businesses. This new KPMG report analyses four scenarios to explore how the UK can meet its 2050 decarbonisation ambitions, and helps set out the benefits and challenges for each. Important strategic choices lie ahead for the industry and this report can help inform the debate.”